Beauty really does lie in the detail. We have all gazed at the splendor a professional high-resolution image and understood, after snapping away for years on a compact camera or phone, that there is richness in more information. Higher resolution means seeing details you haven’t been able to see before.
Credit Card Scores: Delivering Greater Resolution
This is exactly what Westpac Banking was aiming for when it looked to FICO to introduce a daily transaction score. Westpac was looking to improve its ‘financial resolution’ by assessing its customer risk and attrition every day, instead of the industry standard of every 30 days.FICO® Transaction Scores are based on a customer’s card usage patterns and updated with every transaction authorization, yielding a more precise and current assessment of customer risk and purchase behavior that can be used to target cardholder decisions.
Credit Card Scores: Increased Revenue, Reduced Bad Debts
The impact of this predictive analytics project for Australia’s second-biggest bank has been far-reaching. Paul Deall, senior manager of unsecured risk at Westpac, and his team have fundamentally changed the way the bank manages its 3 million credit card accounts. The FICO solution is on track to deliver $6 million per year in increased revenue and reduced bad debt expense. This significant achievement is even more remarkable in that it was implemented in 12 months and is future-proofed and scalable.The project results have made it a worthy winner this year of the FICO Decision Management Award for Customer Growth and Retention. Winners will be featured in presentations at FICO World 2014 in San Diego, November 11-14.
Credit Card Scores: A Competitive Advantage
Paul Deall said, “Improving the speed with which we can identify and act on changes in customer behavior has given us an edge. Customer communication is also a major contributor to account retention, so improving our reaction time has helped us hold onto customers.“In a fiercely competitive banking market such as Australia, the main financial players are fighting for share of wallet, with customer service as the principal battleground.”
Read more about this award winner in our news release. You can also check out the winner of the Fraud Control category, Garanti.
